At Macroeconomic Equilibrium

In a small economy in 2011,aggregate expenditure was $800 million while GDP that year was $850 million.Which of the following can explain the difference between aggregate expenditure and GDP that year? A) Aggregate expenditure is always less than GDP in developed countries. B) Firm investment in inventories was less than anticipated in 2011. C) Firm investment in inventories was greater than anticipated in 2011. D) Aggregate expenditure is always less than GDP in developing countries.

Firms in a small economy planned that inventories would grow over the past year by $300,000.Over that year,inventories actually grew by $400,000.This implies that A) aggregate expenditure that year was less than GDP that year. B) there was an unplanned decrease in inventories that year. C) there was a planned decrease in inventories that year. D) aggregate expenditure that year was equal to GDP that year.